FMCG cos likely to stay insulated from Dubai roil

ET Bureau|

Nov 28, 2009, 01.51 AM IST

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NEW DELHI: Indian FMCG companies, with large operations in the Middle East such as Marico and Dabur, claimed on Friday that their businesses were by and large insulated from the debt crisis roiling Dubai.

Marico sells hair-care products such as creams and oils in Dubai under the Parachute brand and is a market leader in these segments. “While these developments are bound to dampen sentiments in the region, we do not anticipate any adverse impact on our FMCG business, primarily because we operate in categories of daily usage,” said Vijay Subramaniam, CEO of Marico’s international business.

Mr Subramaniam said Marico’s sales had grown in double digits in countries which make up GCC (Gulf Co-operation Council) during the current fiscal.

The GCC region comprises the United Arab Emirates (UAE), Saudi Arabia, Qatar, Bahrain, Kuwait and Oman. Dubai is part of the seven city states that constitute the UAE.

“We expect to carry forward this momentum,” Mr Subramaniam added. The Rs 2,000-crore company does not have a manufacturing facility in Dubai, and services the Dubai market through plants in Egypt and India.

The Delhi-based, Rs 2,800-crore Dabur India derives only 5% of its international business from Dubai, though it has a manufacturing facility there. “The impact of the current crisis on our business is negligible,” said Dabur India CEO Sunil Duggal. Dabur sells shampoos, hair-creams, gels, hair oils and toothpastes under such brands as Vatika, Dabur Amla and Meswak in GCC. Overall, Dabur’s sales in the GCC region grew 36.8% in the July-September quarter, the company said.

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